Yes bank

If I may, here’s an alternative macro perspective with a bit of scuttlebutt:

1. Yes bank has one of the best tech architecture across Indian banking system that I know of. They started to build APIs at least 5 years ago and they were working with multiple small fintechs at that time . Their investor presentation says that they process 40% of all digital payments in India !

2. The brand recall is good and even though the bank has gone through issues, there was never a run on the bank. I, eg , continue to run one of my primary account with them

3. I own one of their cards and have seen that their fraud management practices are better than any I have seen

4. Their CASA has not done well – don’t know the underlying reasons but I don’t think that over a period this is not a solvable issue . ( most of you may recall, yes bank was the first bank ever to give 7% interest on savings deposits)

5. SBI parentage is actually good because sbi itself has done a bit of transformation (someone one can’t say about any other psu bank including bank of Baroda )

6. Their Npa issue is behind them and with retail franchise now 40%+, the NIMs and ROA should improve

7. And I guess they have done well on SME banking as well

I would tend to think that over a 3-5 year period, there could be a significant growth possibility.

Disclosure- invested and biased